Handle risks, monitor risks and control measures, and report on results tailored to each target group. Simple in one tool.

 

Risk Management

We previously discussed how to begin risk management using the first two steps of the risk management process:

1. Identify the risk

2. Assess the risk

In these two steps:

• Map out which positive events (opportunities) and negative events (risks) affect your organization's objective.
• Learn how to easily conduct an assessment in line with your business processes.

In this blog, we further explain the next steps of risk management, also referred to as risk management:

3. Treat the risk

4. Monitor and report on risk

This way you can create a complete risk management and reduce the risks for your organization.

Risk management: deal with the risk

If a risk exceeds the risk tolerance, a control measure will need to be taken. The most familiar purpose of control measures is to reduce a risk to an acceptable level. There are also other ways to deal with risks. We recognize the following risk strategies:

Avoid

A very effective solution is to remove the risk by no longer performing certain risky activities. For example, your organization may decide not to offer a certain product because of the product liability risk. Excluding liabilities in terms of delivery or contracting also fall into this category.

Reduce

If avoiding risk is impossible or undesirable, look for ways to bring the risk to an acceptable level. Before taking any management measures, it is necessary to consider what the causes of an undesirable event (may) be. Usually there will not just be a single cause, but there will be multiple causes. Also, those events will often be separated in time and then one often leads to the other. You will need to determine what measures or combination of measures will be chosen to manage the risks.

One way to reduce risks is by using a risk management tool like Perium. Within the platform you get a link between the risks and control measures. This gives you a clear overview of the all possible actions you can perform, to reduce the various risks.

Transfer

Transferring a risk does not focus on reducing the probability, but on reducing the consequences. An example is purchasing liability insurance. Sharing a risk together by sharing any costs with a partner is also a form of risk transfer.

Accept

If the above alternatives are not possible or desirable, accepting the risk is also an option. Sometimes the cost of an unwanted event is less than the cost to control it. Then, should the risk occur, you cover the cost from your reserve.

Monitor and report on risk

If the chosen strategy does not lead to the desired results, adjustments must be made. Perhaps the control measures are implemented according to the set guidelines and criteria, but the control measures must be adjusted or expanded so that the desired results are achieved. To assess this, risks and control measures will have to be assessed periodically.

Monitoring risks is also easy to report in a risk management tool like Perium. With this tool, you have a smart data-driven PDCA cycle that puts the right actions with the right person at the right time. This way, employees pick up risks in time.

It is also possible that the combination of management measures in place is inadequate or incomplete, because not all risks run have been identified and evaluated. In Perium, all relevant digital risks are available, so there is no chance of this problem occurring.

In addition, management measures should be reviewed periodically. In doing so, you look at:

• the design of the measure
• the existence of the measure
• the operation of the measure

This determines the effectiveness and maturity level of the management measure.

Digital risks

Risk management is an ongoing process and an essential part of business operations. It is not a one-time activity; the inventory, analysis and treatment of risks must be gone through, completed and reviewed on a regular basis. Perium helps you by offering complete and validated digital risks that are already linked to the control measures for you. This saves you a lot of input work. You can also add risks specific to your organization.

Target reporting

Risk reports must be consistent with the target audience. A report to the board or (external) regulators has a different level of detail than a report to managers or risk owners.

Directors and supervisors

Directors need information about where the organization stands. They ask themselves: how digitally resilient are we as an organization? This helps directors make decisions about risk appetite and strategy.

Management

Managers need a more detailed picture and want support in making choices about priorities, capacity and budgets. For example, they ask themselves: are we implementing the right measures?

Risk owners

Risk owners want to know what activities need to be performed and see things in context. For example, who is doing what, when and what is needed to do this?

Perium offers integrated reporting that provides insight into your organization's performance and risks. Perium's dashboard quickly reveals for each target group:

• where you stand as an organization
• What your biggest risks are (heatmap)
• What is the maturity level of your control measures

 

Risk management with Perium

Risk management is an important activity for any organization. With Perium, you can do this more effectively and efficiently. You are up and running within half an hour and can immediately use relevant best practices and standards. If you are missing specific risks or control measures, you can easily add them to the platform.